Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form
20-F [X] Form 40-F [ ]

Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

Indicate
by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes
[ ] No [X]

If
“Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

EXPLANATORY
NOTE

Attached
hereto and incorporated by reference herein is the registrant’s press release issued on May 17, 2018, announcing financial
results for the first quarter ended March 31, 2018, unaudited condensed interim financial statements as of March 31, 2018 and
operating and financial review for the first quarter ended March 31, 2018. This Report of Foreign Private Issuer on Form 6-K shall
be incorporated by reference into the Company’s registration statement on Form F-3 (File No. 333-207250 and 333-222138),
filed with the Securities and Exchange Commission (the “SEC”) on October 2, 2015 and December 18, 2017, to the extent
not superseded by information subsequently filed or furnished (to the extent the Company expressly states that it incorporates
such furnished information by reference) by the Company under the Securities Act of 1933, as amended, or the Securities Exchange
Act of 1934, as amended.

2

SIGNATURE

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

VASCULAR
BIOGENICS LTD.

Date:
May 17, 2018

By:

/s/
Dror Harats

Name:

Dror
Harats

Title:

Chief
Executive Officer

3

VBL
Therapeutics Announces First Quarter 2018 Financial Results

Conference
Call and Webcast at 8:30am Eastern Time Today

TEL
AVIV, ISRAEL, May 17, 2018 — VBL Therapeutics (Nasdaq: VBLT), a clinical-stage biotechnology company focused on the
discovery, development and commercialization of first-in-class treatments for cancer, today announced financial results for the
first quarter ended March 31, 2018 and provided a corporate update.

“We continue
to advance the OVAL trial, our Phase 3 potential registration trial in platinum-resistant ovarian cancer, in collaboration with
the GOG Foundation,” said Yael Cohen M.D., VP Clinical Development of VBL
Therapeutic. “We are in the process of amending the protocol to include
an interim analysis for evidence of an early efficacy signal with a potential readout from this analysis in the fourth
quarter of 2019.”

“We are also advancing our MOSPD2 program
for oncology and inflammatory indications and, at the recent American Academy of Cancer Research (AACR) meeting, presented new
proof-of-concept on the use of a bispecific antibody to kill MOSPD2-expressing cancer cells,” said
Dror Harats M.D., Chief Executive Officer of VBL Therapeutics. “VBL
is well capitalized, with approximately $50 million in cash, which will enable us to continue the development of VB-111 and our
deep pipeline through 2020.’

First
Quarter and Recent Corporate Highlights:

●

Continued
to treat patients in the ongoing Phase 3 OVAL trial, studying VB-111 in platinum-resistant ovarian cancer. The OVAL study
has been designed to enroll up to 350 adult patients at approximately 70 clinical sites in the U.S. and Israel.

o

The
Company is modifying the OVAL protocol to
incorporate an efficacy interim readout, which is expected to occur in the fourth quarter of 2019.

●

The Company is conducting an
in-depth analysis of the GLOBE study, including
analysis of patient subgroups, in order to better understand the outcome of the
study, the
major difference between the Phase II and the GLOBE trial and the potential activity
of VB-111 in rGBM.

●

Presented
late breaking research on the Company’s MOSPD2 oncology program at the American Association for Cancer Research (AACR)
2018 annual meeting.

o

The
data provide proof-of-concept on the use of a bispecific antibody to kill MOSPD2-expressing cancer cells, with potential applicability
to solid tumors and myeloid malignancies.

o

The
MOSPD2 program was also featured in a presentation at the 17th MIXiii-BIOMED 2018 Conference and Exhibition, May 15-17 in
Tel Aviv, Israel.

o

VBL
is developing its VB-600 series of antibodies targeting MOSPD2 for oncology and inflammatory applications.

The
funds will support the development of VB-111 as well as the Company’s Vascular Targeting System (VTS™) platform
for therapeutic gene therapy.

●

Appointed
two senior pharmaceutical executives, Susan Kelley, M.D., and David Hastings, to its Board of Directors.

First
Quarter Ended March 31, 2018 Financial Results:

●

Revenues:
In 2017 the Company entered into an exclusive license agreement with NanoCarrier Co., Ltd. and received an up-front and
a milestone payment of $17.0 million in aggregate, of which $0.2 million was recognized as of March 2018.

●

Cash
Position: Cash, cash equivalents and short-term bank deposits at March 31, 2018, were $49.9 million. Working capital at
March 31 was $44.3 million. The Company expects that the current cash, cash equivalents and short-term bank deposits will
be sufficient to fund operating expenses and capital expenditure requirements through 2020.

●

R&D
Expenses: Research and development expenses for the quarter ended March 31, 2018, were approximately $5.8 million, compared
to approximately $4.1 million in the comparable period in 2017. R&D expenses are shown net of IIA grants.

●

G&A
Expenses: General and administrative expenses for the quarter ended March 31, 2018 were $1.4 million, compared to $1.1
million for the comparable period in 2017.

●

Comprehensive
Loss: The Company reported a comprehensive loss for first quarter ended March 31, 2018 of $7.2 million, or ($0.24) per
share, compared to a net loss of $5.0 million, or ($0.19) per share in first quarter ended March 31, 2017.

Conference
Call:

Thursday,
May 17th @ 8:30am Eastern Time

US
Domestic:

877-222-6394

International:

1-703-925-2702

Conference
ID:

9993639

Webcast:

https://edge.media-server.com/m6/p/zja7xger

4

Replays,
Available through May 31, 2018

US
Domestic:

855-859-2056

International:

1-404-537-3406

Conference
ID:

9993639

About
VBL

Vascular
Biogenics Ltd., operating as VBL Therapeutics, is a clinical stage biopharmaceutical company focused on the discovery, development
and commercialization of first-in-class treatments for cancer. The Company’s lead oncology product candidate, ofranergene
obadenovec (VB-111), is a first-in-class, targeted anti-cancer gene-therapy agent that is positioned to treat a wide range of
solid tumors. It is conveniently administered as an IV infusion once every two months. It has been observed to be well-tolerated
in >300 cancer patients and demonstrated efficacy signals in an “all comers” Phase 1 trial as well as in three
tumor-specific Phase 2 studies. Ofranergene obadenovec is currently being studied in a Phase 3 trial for platinum-resistant ovarian
cancer.

Forward
Looking Statements

This
press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking
statements, which are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “goal,” “intend,” “look forward to”, “may,” “plan,”
“potential,” “predict,” “project,” “should,” “will,” “would”
and similar expressions. These forward-looking statements include, but are not limited to, statements regarding VB-111, including
its clinical development, therapeutic potential and clinical results. These forward-looking statements are not promises or guarantees
and involve substantial risks and uncertainties. Among the factors that could cause actual results to differ materially from those
described or projected herein include uncertainties associated generally with research and development, clinical trials and related
regulatory reviews and approvals, and the risk that historical clinical trial results may not be predictive of future trial results.
A further list and description of these risks, uncertainties and other risks can be found in the Company’s regulatory filings
with the U.S. Securities and Exchange Commission, including in our annual report on Form 20-F for the year ended December 31,
2017. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. VBL Therapeutics undertakes no obligation to update or revise the information contained in this
press release, whether as a result of new information, future events or circumstances or otherwise.

INVESTOR
CONTACT:

Michael
Rice

LifeSci
Advisors, LLC

(646)
597-6979

5

VASCULAR
BIOGENICS LTD.

CONDENSED
INTERIM STATEMENTS OF FINANCIAL POSITION

(UNAUDITED)

March, 31 2018

December, 31 2017

U.S. dollars in thousands

Assets

CURRENT ASSETS:

Cash and cash equivalents

$

8,583

$

6,694

Short-term bank deposits

41,306

48,035

Trade receivables

—

2,000

Other current assets

2,307

1,729

TOTAL CURRENT ASSETS

52,196

58,458

NON-CURRENT ASSETS:

Property and equipment, net

8,222

7,128

Long-term prepaid expenses

64

103

TOTAL NON-CURRENT ASSETS

8,286

7,231

TOTAL ASSETS

$

60,482

$

65,689

Liabilities and equity

CURRENT LIABILITIES-

Accounts payable:

Trade

$

3,612

$

3,058

Other

3,426

3,465

Deferred revenue

883

1,046

TOTAL CURRENT LIABILITIES

7,921

7,569

NON-CURRENT LIABILITIES-

Severance pay obligations, net

128

128

Deferred revenue

2,092

2,092

TOTAL NON-CURRENT LIABILITIES

2,220

2,220

TOTAL LIABILITIES

10,141

9,789

EQUITY:

Ordinary shares

57

57

Accumulated other comprehensive income

16

16

Additional paid in capital

222,675

221,055

Warrants

2,960

2,960

Accumulated deficit

(175,367

)

(168,188

)

TOTAL EQUITY

50,341

55,900

TOTAL LIABILITIES AND EQUITY

$

60,482

$

65,689

The
accompanying notes are an integral part of the financial statements.

6

VASCULAR
BIOGENICS LTD.

CONDENSED
INTERIM STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

Three Months Ended March 31,

2018

2017

U.S. dollars in thousands

REVENUES

$

163

$

-

COST OF REVENUES

(67

)

-

GROSS PROFIT

96

-

RESEARCH AND DEVELOPMENT EXPENSES, net

5,760

4,144

MARKETING EXPENSES

235

-

GENERAL AND ADMINISTRATIVE EXPENSES

1,395

1,105

OPERATING LOSS

7,294

5,249

FINANCIAL INCOME

(145

)

(219

)

FINANCIAL EXPENSES

30

4

FINANCIAL INCOME, net

(115

)

(215

)

COMPREHENSIVE LOSS

7,179

5,034

LOSS PER ORDINARY SHARE

Basic and diluted

$

0.24

$

0.19

Number of shares

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING-

Basic and diluted

29,887,254

26,907,172

The
accompanying notes are an integral part of the condensed financial statements.

Adjustments required to reflect net cash used in operating activities:

Depreciation

$

237

$

36

Interest income

(194

)

(88

)

Exchange gains on cash and cash equivalents

(7

)

(82

)

Net changes in severance pay obligations

—

5

Share based payments

1,619

740

1,655

611

Changes in working capital:

Increase in other current assets

(578

)

(717

)

Decrease in trade receivables

2,000

Decrease (increase) in long-term prepaid expenses

39

(174

)

Increase (decrease) in accounts payable and accrued expenses:

Trade

518

229

Other

(39

)

(662

)

Decrease in deferred revenue

(163

)

—

1,777

(1,324

)

$

3,432

$

(713

)

APPENDIX B:

Non cash activity-

Purchase of property and equipment in payables

36

165

The
accompanying notes are an integral part of the condensed financial statements.

8

VASCULAR
BIOGENICS LTD.

NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS

(UNAUDITED)

NOTE
1 – GENERAL

Vascular
Biogenics Ltd. (the “Company” or “VBL”) was incorporated in January 2000. The Company is a late-stage
clinical biopharmaceutical company focused on the discovery, development and commercialization of first-in-class treatments for
cancer. VBL has also developed a proprietary platform of small molecules, Lecinoxoids, for the treatment of chronic immune-related
indications, and is also conducting a research program exploring the potential targeting of MOSPD2 for immuno-oncology anti-inflammatory
applications.

VB-111
(ofranergene obadenovec), a Phase 3 drug candidate, is the Company’s lead product candidate in the Company’s cancer
program. VB-201, a Phase 2-ready drug candidate, is the Company’s lead Lecinoxoid-based product candidate. The Company’s
“VB-600 series” for targeting MOSPD2 is at pre-clinical stage.

On
March 8, 2018, the Company reported top-line results from its pivotal Phase 3 GLOBE study in patients with recurrent glioblastoma
(rGBM). The study did not meet its pre-specified primary endpoint of overall survival. The Company expects to receive the full
and final data and to conduct an in-depth analysis in order to better understand the outcome of the study and the potential activity
of VB-111 in recurrent GBM. The Company believes the GLOBE study in rGBM will not necessarily have implications on the prospects
for VB-111 in other tumor types. In December 2017, the OVAL phase 3 potential registration study of VB-111 in platinum resistant
ovarian cancer was launched in and is being conducted in collaboration with the GOG Foundation, Inc., a leading organization for
research excellence in the field of gynecologic malignancies.

Since
its inception, the Company has incurred significant losses, and it expects to continue to incur significant expenses and losses
for at least the next several years. As of March 31, 2018, the Company had an accumulated deficit of $175.4 million. The Company’s
losses may fluctuate significantly from quarter to quarter and year to year, depending on the timing of its clinical trials, the
receipt of payments under any future collaboration agreements it may enter into, and its expenditures on other research and development
activities.

As
of March 31, 2018, the Company had cash, cash equivalents and short-term bank deposits of $49.9 million. The Company may seek
to raise more capital to pursue additional activities. The Company may seek these funds through a combination of private and public
equity offerings, government grants, strategic collaborations and licensing arrangements. Additional financing may not be available
when the Company needs it or may not be available on terms that are favorable to the Company.

NOTE
2 - BASIS OF PREPARATION

The
Company’s condensed interim financial statements as of March 31, 2018 and for the three months then ended (the “interim
financial statements”) have been prepared in accordance with International Accounting Standard No. 34, “Interim Financial
Reporting” (“IAS 34”). These interim financial statements, which are unaudited, do not include all disclosures
necessary for a complete presentation of the Company’s financial position, results of operations, and cash flows, in conformity
with generally accepted accounting principles. The condensed interim financial statements should be read in conjunction with the
Company’s annual financial statements as of December 31, 2017 and for the year then ended, along with the accompanying notes,
which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB).” The results of operations for the three months ended March 31,
2018 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period.

NOTE
3 - SIGNIFICANT ACCOUNTING POLICIES

The
accounting policies and calculation methods applied in the preparation of the interim financial statements are consistent with
those applied in the preparation of the annual financial statements as of December 31, 2017 and for the year then ended.

NOTE
4 - FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

The
Company’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest
rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The interim financial statements do not
include all financial risk management information and disclosures required in the annual financial statements; therefore, they
should be read in conjunction with the Company’s annual financial statements as of December 31, 2017. There have been no
significant changes in the risk management policies since the year end.

NOTE
5 - CASH AND CASH EQUIVALENTS AND SHORT-TERM BANK DEPOSITS

Cash
and cash equivalents and short-term bank deposits as of March 31, 2018 were $8.6 million and $41.3 million, respectively. The
short-term bank deposits as of March 31, 2018 were for terms of nine months to twelve months and carried interest at annual rates
of 1.56%-2.14%.

9

NOTE
6 - SHAREHOLDERS’ EQUITY

a.

During the first quarter ended
March 31, 2018, the Board ratified a change in the vesting periods of the options
granted to its employees and officers executed on November 2016 and March 2017. The
options will vest by 4 years with 25% on the first year anniversary, and the remaining
75% at 1/12 of the options at the end of each quarter over the course of the last 3 years.
This change resulted
in a catch-up expense impact of approximately $600 thousand in the first quarter of 2018,
which will wind down by the end of the year.

b.

In
January 2018, the Company’s Board of Directors approved the grant of options to purchase 128,000 ordinary shares with
an exercise price equal to $6.90 per share vesting over 4 years to its Directors, including 2 new Directors. The fair value
of the options was $838 thousand and was computed using the Black-Scholes model. The underlying data used for computing the
fair value of the options are mainly as follows: an exercise price equal to $6.90, expected volatility: 97%; risk-free interest
rate: 2.46%; expected dividend: zero; and expected term: 11 years.

c.

In
February 2018, the Board of Directors approved an increase of 1,402,395 Ordinary Shares to the number of shares available
for issuance under the 2014 Plan.

NOTE
7 – REVENUE

In
2017, the Company signed a license and supply agreement. In determining the amounts to be recognized as revenue, the Company used
its judgement in the following main issues:

Identifying
the performance obligations in the agreement and determining whether the license provided is distinct - based on the Company’s
analysis, the license is distinct as the licensee is able to benefit from the license on its own at its current stage (inter alia,
due to sublicensing rights, rights and responsibility for development in the territory, etc.).

Allocation
of the transaction price - the Company estimated the standalone selling prices of the services to be provided based on expected
cost plus a margin and used the residual approach to estimate the standalone selling price of the license as the Company has not
yet established a price for the license, and it has not previously been sold on a standalone basis.

Variable
consideration consists of potential future milestone payments. The Company determined that all such variable consideration shall
be allocated to the license (the satisfied performance obligation).

All
revenue recognized during the three months ended March 31, 2018 was related to amounts included in the contract liability balance
at the beginning of the period, and relates to the recognition of services revenue.

10

OPERATING
AND FINANCIAL REVIEW

The
following discussion and analysis of our financial condition and results of operations should be read in conjunction with the
Company’s annual financial statements as of and for the year ended December 31, 2017 (included in our Annual Report of Foreign
Private Issuer on Form 20-F for the year ended December 31, 2017) and their accompanying notes and the related notes and the other
financial information included elsewhere in this Form 6-K. This discussion contains forward-looking statements that involve risks,
uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements
as a result of various factors. Our audited financial statements as of and for the year ended December 31, 2017 and our unaudited
financial statements for the three months ended on March 31, 2018 (the “Period”) have been prepared in accordance
with IFRS, as issued by the IASB. Unless stated otherwise, comparisons included herein are made to the three months period ended
on March 31, 2017 (the “Parallel Period”).

Overview

We
are a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of first-in-class treatments
for cancer. Our program is based on our proprietary Vascular Targeting System, or VTS, platform technology, which utilizes genetically
targeted therapy to destroy newly formed, or angiogenic, blood vessels, and which we believe will allow us to develop product
candidates for multiple oncology indications.

Our
lead product candidate, VB-111(ofranergene obadenovec), is a gene-based biologic that we are developing for solid tumor indications,
with an advanced ongoing program ovarian cancer. We have received orphan drug designation in both the United States and Europe
for gliomas and an orphan designation for the treatment of ovarian cancer by the European Medicines Agency. On March 8, 2018,
we announced top-line results from the GLOBE study, a Phase 3 study in rGBM, which showed that the study did not meet its pre-specified
primary endpoint of overall survival (OS). We are conducting an in-depth analysis in order to better understand the outcome of
the GLOBE study and the potential activity of VB-111 in rGBM, and especially as those results materially deviate from the results
of the Phase 2 study in the same indication. We do not think that results of the GLOBE study in rGBM will necessarily have implications
on the prospects for VB-111 in other tumor types. Our OVAL phase 3 potential registration study of VB-111 in platinum resistant
ovarian cancer was launched in December 2017 and is conducted in collaboration with the GOG Foundation, Inc., a leading organization
for research excellence in the field of gynecologic malignancies.

We
also have been conducting a program targeting anti-inflammatory diseases, based on the use of our Lecinoxoid platform technology.
Lecinoxoids are a novel class of small molecules we developed that are structurally and functionally similar to naturally occurring
molecules known to modulate inflammation. The lead product candidate from this program, VB-201, is a Phase 2-ready molecule that
demonstrated efficacy in reducing vascular inflammation in a Phase 2 sub-study in psoriatic patients with cardiovascular risk.
Based on recent pre-clinical studies, we believe that VB-201 and some second generation molecules such as VB-703 may be applicable
for NASH and renal fibrosis.

We
are also conducting a research program exploring the potential of targeting of MOSPD2 (Motile Sperm Domain-containing Protein
2) for immuno-oncology and anti-inflammatory applications. VBL research has identified MOSPD2 as a protein involved in cell motility.
In January 2017, we reported that targeting of MOSPD2 inhibits chemotaxis of monocytes and neuropils, and that unpublished VBL
data also show MOSPD2 expression on certain tumor cells. In April 2018, we presented late-breaking study at the American Association
for Cancer Research (AACR) 2018 Annual Meeting, demonstrating high and selective MOSPD2 expression by multiple tumor types along
with involvement of MOSPD2 in tumor cell invasiveness. A novel bi-specific antibody that was engineered to bridge interaction
of T-cells with tumor cells, via binding to the T-cell protein CD3 and the tumor receptor MOSPD2, induced T-cell activation and
resulted in the killing of cancer cells in a pre-clinical setting. We believe that targeting of MOSPD2 may have several therapeutic
applications, including inhibition of monocyte migration in chronic inflammatory conditions, inhibition of tumor cell metastases
and targeting of MOSPD2-expressing tumor cells. We are developing our pipeline candidates from the “VB-600 series”
of antibodies towards these applications.

We
are developing our lead oncology product candidate, VB-111, for solid tumor indications, with current clinical programs thyroid
cancer and ovarian cancer.

VB-111
was studied in a Phase 2 trial for recurrent platinum-resistant Ovarian Cancer and in a Phase 2 study in recurrent, iodine-resistant
differentiated Thyroid cancer. In a Phase 2 trial for recurrent platinum-resistant ovarian cancer, VB-111 demonstrated a statistically
significant increase in overall survival and 60% durable response rate (as measured by reduction in CA-125), approximately twice
the historical response with bevacizumab plus chemotherapy in ovarian cancer. In December 2016, we had an end-of-Phase-2 meeting
with the FDA, in which we received approval from the FDA to advance VB-111 for a Phase 3 study in platinum-resistant ovarian cancer,
which we launched in December 2017. The OVAL study is conducted in collaboration with the Gynecologic Oncology Group (GOG) Foundation,
Inc., a leading organization for research excellence in the field of gynecologic malignancies. Following the GLOBE data, we decided
to modify the OVAL protocol and include an efficacy interim readout, which we expect to occur in the fourth quarter of 2019.

11

In
October 2017, we announced the opening of our new gene therapy manufacturing plant in Modiin, Israel. The facility is the first
commercial-scale gene therapy manufacturing facility in Israel and currently one of the largest gene-therapy designated ones in
the world (20,000 sq. ft.). It is capable of manufacturing in large-scale capacity of 1,000 liters and is scalable to 2,000 liters.

In
November 2017, we signed an exclusive license agreement with NanoCarrier Co., Ltd. (TSE Mothers:4571) for the development, commercialization
and supply of VB-111 in Japan. VBL retains rights to VB-111 in the rest of the world. Under terms of the agreement, VBL has granted
NanoCarrier an exclusive license to develop and commercialize VB-111 in Japan for all indications. VBL will supply NanoCarrier
with VB-111, and NanoCarrier will be responsible for all regulatory and other clinical activities necessary for commercialization
in Japan. In exchange, we received an up-front payment of $15 million, and are entitled to receive greater than $100 million in
development and commercial milestone payments if certain development and commercial milestones are achieved. VBL will also receive
tiered royalties on net sales in the high-teens.

We
commenced operations in 2000, and our operations to date have been limited to organizing and staffing our company, business planning,
raising capital, developing our VTS, Lecinoxoids platform technologies and developing our product candidates, including conducting
pre-clinical studies and clinical trials of VB-111 and VB-201. To date, we have funded our operations through private sales of
preferred shares, a convertible loan, public offerings and grants from the Israeli Office of Chief Scientist, or OCS, which has
later transformed to the Israeli Innovation Authority, or IIA, under the Israel Encouragement of Research and Development in Industry,
or the Research Law. We have no products that have received regulatory approval and accordingly have never generated regular revenue
streams. Since our inception and through March 31, 2018, we had raised an aggregate of $232.8 million to fund our operations,
of which $113.4 million was from sales of our equity securities, $40.5 from our initial public offering, or IPO, $15.0 million
from a November 3, 2015 underwritten offering, approximately $24.0 million from a June 7, 2016 registered direct offering, $17.9
million from a November 16, 2017 underwritten offering and $22.0 million from IIA grants.

Since
inception, we have incurred significant losses. Our loss for the Period was $7.2 million. For the years ended December 31, 2017
and 2016, our loss was $10.1 million and $16.0 million, respectively. We expect to continue to incur significant expenses and
losses for at least the next several years. As of March 31, 2018, we had an accumulated deficit of $175.4 million. Our losses
may fluctuate significantly from quarter to quarter and year to year, depending on the timing of our clinical trials, the receipt
of payments under any future collaborations we may enter into, and our expenditures on other research and development activities.

As
of March 31, 2018, we had cash, cash equivalents and short-term bank deposits of $49.9 million. To fund further operations, we
will need to raise additional capital. We may seek to raise more capital to pursue additional activities, which may be through
a combination of private and public equity offerings, government grants, strategic collaborations and licensing arrangements.
Additional financing may not be available when we specifically need it or may not be available on terms that are favorable to
us. As of March 31, 2018, we had 37 employees. Our operations are currently located in a single facility in Modiin, Israel.

12

Various
statements in this release concerning our future expectations constitute “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements include words such as “may,” “expects,”
“anticipates,” “believes,” and “intends,” and describe opinions about future events. These
forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or
achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. Some of these risks are incurred losses; dependence on the success of our lead product candidate, VB-111, its clinical
development, regulatory approval and commercialization; the novelty of our technologies, which makes it difficult to predict the
time and cost of product candidate development and potential regulatory approval; as well as potential delays in our clinical
trials.

These
and other factors are more fully discussed in the “Risk Factors” section of the Annual Report on Form 20-F for the
year ended December 31, 2017. In addition, any forward-looking statements represent our views only as of the date of this release
and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any
forward-looking statements unless required by law.

Financial
Overview

Revenue

To
date, we have generated approximately $14.0 million revenue from an exclusive license agreement for the development, commercialization,
and supply of ofranergene obadenovec (“VB-111”) in Japan for all indications for a $15.0 million upfront payment,
in addition to a $2.0 million recognized milestone payment. The cost of revenues associated with these payments was approximately
$0.4 million mainly to Tel Hashomer for a 2% consideration that was received for granting a license or similar rights to this
intellectual property. We do not expect to receive any other revenue from any product candidates that we develop unless and until
we obtain regulatory approval and commercialize our products or enter into collaborative agreements with third parties.

Research
and Development Expenses

Research
and development expenses consist of costs incurred for the development of both of our platform technologies and our product candidates.
Those expenses include:

●

employee-related
expenses, including salaries and share-based compensation expenses for employees in research and development functions;

expenses
relating to outsourced and contracted services, such as external laboratories, consulting and advisory services;

●

supply,
development and manufacturing costs relating to clinical trial materials;

●

maintenance
of facilities, depreciation and other expenses, which include direct and allocated expenses for rent and insurance; and

●

costs
associated with pre-clinical and clinical activities.

Research
expenses are recognized as incurred. An intangible asset arising from the development of our product candidates is recognized
if certain capitalization conditions are met. As of March 31, 2018, we did not have any capitalized development costs.

Costs
for certain development activities are recognized based on an evaluation of the progress to completion of specific tasks using
information and data provided to us by our vendors and clinical sites. Nonrefundable advance payments for goods or services to
be received in future periods for use in research and development activities are deferred and capitalized. The capitalized amounts
are then expensed as the related goods are delivered and the services are performed.

We
have received grants from the IIA as part of the research and development programs for our VTS and Lecinoxoid platform technologies.
The requirements and restrictions for such grants are found in the Research Law. These grants are subject to repayment through
future royalty payments on any products resulting from these research and development programs, including VB-111 and VB-201. The
total gross amount of grants actually received by us from the IIA, including accrued LIBOR interest as of March 31, 2018 totaled
$27.0 million. As of March 31, 2018, we have incurred a $510 thousand royalty payment to the IIA derived from an upfront and a
milestone payment from an exclusive license agreement of which $416 thousand has been paid to the IIA.

Information
on our liabilities and the restrictions that we are subject to under the Research Law in connection with the IIA grants that we
have received is detailed in the Annual Report on Form 20-F as of and for the year ended December 31, 2017.

13

Under
applicable accounting rules, the grants from the IIA have been accounted for as an off-set against the related research and development
expenses in our financial statements. As a result, our research and development expenses are shown on our financial statements
net of the IIA grants.

General
and Administrative Expenses

General
and administrative expenses consist principally of salaries and related costs for personnel in executive and finance functions
such as salaries, benefits and share-based compensation. Other general and administrative expenses include facility costs not
otherwise included in research and development expenses, communication expenses, and professional fees for legal services, patent
counseling and portfolio maintenance, consulting, auditing and accounting services.

Marketing
Expenses

Marketing
expenses consists principally of salaries and related cost for personnel in marketing and commercialization functions such as
salaries, benefits and share-based compensation, in addition to commercialization consulting services.

Financial
Expenses (Income), Net

Financial
income is comprised of interest income generated from interest earned on our cash, cash equivalents and short-term bank deposits
and gains and losses due to fluctuations in foreign currency exchange rates, mainly in the appreciation and depreciation of the
NIS exchange rate against the U.S. dollar.

Financial
expenses primarily consist of gains and losses due to fluctuations in foreign currency exchange rates.

Taxes
on Income

We
have not generated taxable income since our inception, and had carry forward tax losses as of December 31, 2017 of $144.9 million.
We anticipate that we will be able to carry forward these tax losses indefinitely to future tax years. Accordingly, we do not
expect to pay taxes in Israel until we have taxable income after the full utilization of our carry forward tax losses.

We
recognize deferred tax assets on losses for tax purposes carried forward to subsequent years if utilization of the related tax
benefit against a future taxable income is expected. We have not created deferred taxes on our tax loss carry forward since their
utilization is not expected in the foreseeable future.

Critical
Accounting Policies and Significant Judgments and Estimates

This
management’s discussion and analysis of our financial condition and results of operations is based on our financial statements,
which have been prepared in accordance with IFRS. The preparation of these financial statements requires us to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Estimates and
judgments are continually evaluated and are based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.

We
make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the
related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.

Revenue

In
2017, the Company signed a license and supply agreement. In determining the amounts to be recognized as revenue, the Company used
its judgement in the following main issues:

Identifying
the performance obligations in the agreement and determining whether the license provided is distinct - based on the Company’s
analysis, the license is distinct as the licensee is able to benefit from the license on its own at its current stage (inter alia,
due to sublicensing rights, rights and responsibility for development in the territory, etc.).

Allocation
of the transaction price - the Company estimated the standalone selling prices of the services to be provided based on expected
cost plus a margin and used the residual approach to estimate the standalone selling price of the license as the Company has not
yet established a price for the license, and it has not previously been sold on a standalone basis.

Variable
consideration consists of potential future milestone payments. The Company determined that all such variable consideration shall
be allocated to the license (the satisfied performance obligation).

14

Share-Based
Compensation

We
operate a number of equity-settled, share-based compensation plans for employees (as defined in IFRS 2 “Share-Based Payments”),
directors and service providers. As part of the plans, we grant employees, directors and service providers, from time to time
and at our discretion, options and RSU’s to purchase our ordinary shares. The fair value of the employee and service provider
services received in exchange for the grant of the options and RSU’s is recognized as an expense in our statements of comprehensive
loss and is carried to additional paid in capital in our statements of financial position. The total amount is recognized as an
expense ratably over the vesting period of the options, which is the period during which all vesting conditions are expected to
be met.

We
estimate the fair value of our share-based awards to employees and directors using the Black-Scholes option pricing model, which
requires the input of highly subjective assumptions, including (a) the expected volatility of our shares, (b) the expected term
of the award, (c) the risk-free interest rate, and (d) expected dividends. Due to the lack of a public market for the trading
of our shares until October 2014 and a lack of company-specific historical and implied volatility data, we have based our estimate
of expected volatility on the historic volatility of a group of similar companies that are publicly traded. For options granted
since 2015, the expected volatility was calculated using weighted average and was based on the stock price volatility of the Company
since October 1st, 2014 (IPO date) and the remaining years on the stock price volatility of similar companies.

We
will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own share
price becomes available. We estimate the fair value of our share-based awards to service providers based on the value of services
received, which is based on the additional cash compensation that we would need to pay if such options were not granted.

Service
conditions and performance vesting conditions are included in assumptions about the number of options and RSU’s that are
expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied.

We
are also required to estimate forfeitures at the time of grant, and revise those estimates in subsequent periods if actual forfeitures
differ from the estimates. Vesting conditions are included in assumptions about the number of options and RSU’s that are
expected to vest. At the end of each reporting period, we revise our estimates of the number of options and RSU’s that are
expected to vest based on the nonmarket vesting conditions. We recognize the impact of the revision to original estimates, if
any, in profit or loss, with a corresponding adjustment to additional paid in capital.

Clinical
trial accruals

Clinical
trial expenses are charged to research and development expense as incurred. The Company accrues for expenses resulting from obligations
under contracts with clinical research organizations (CROs). The financial terms of these contracts are subject to negotiations,
which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services
are provided. The Company’s objective is to reflect the appropriate trial expense in the financial statements by matching
the appropriate expenses with the period in which services and efforts are expended. As of March 31, 2018, the company had clinical
accruals in the amount of approximately $1.3 million.

Results
of Operations

Comparison
of three month periods ended March 31, 2018 and 2017:

Three Months Ended

March 31,

Increase (decrease)

2018

2017

$

%

(in thousands)

(unaudited)

Revenues

$

163

$

—

163

100

%

Cost of revenues

(67

)

—

(67

)

100

%

Gross profit

96

—

97

100

%

Expenses:

Research and development, gross

6,267

4,370

$

1,897

43

%

Government grants

(507

)

(226

)

(281

)

124

%

Research and development, net

5,760

4,144

1,616

39

%

General and administrative

1,395

1,105

290

26

%

Marketing

235

—

235

100

%

Operating loss

7,294

5,249

2,045

39

%

Financial income, net

(115

)

(215

)

100

-47

%

Loss

$

7,179

$

5,034

$

2,145

43

%

15

Revenues.

On
November 3, 2017 the Company entered into an exclusive license agreement with NanoCarrier Co., Ltd. for the development, commercialization,
and supply of ofranergene obadenovec (“VB-111”) in Japan for all indications. In exchange, the Company received an
up-front and a milestone payment of $17.0 million in aggregate, of which $0.2 million was recognized as of March 2018. This was
offset in 2018 by a cost of revenues payment of approximately $67 thousand, comprised mostly of labor costs related to the performance
obligations that were delivered during the period.

Research
and development expenses, net.

Research
and development expenses are shown net of IIA grants. Research and development expenses, net were approximately $5.8 million for
the Period, compared to approximately $4.1 million in the Parallel Period, an increase of approximately $1.6 million or 39%. The
increase in research and development expenses, net in the Period was mainly due to increased expenses for materials of $0.6 million
for the preparation of a large scale production, in addition to increased rent of $0.2 million and depreciation expense of $0.2
due to the operations of our new Modiin facility, and an increase of payroll related costs due to an overall increase of share
based compensation of approximately $0.5 million. This is offset by an increase in IIA grants due in the Period compared to the
Parallel Period of $0.3 million.

General
and administrative expenses.

General
and administrative expenses for the Period were $1.4 million, compared to $1.1 million for the Parallel Period, an increase of
$0.3 million or 26%. This increase is mainly attributed to payroll related costs for management and directors share-based compensation
expense.

Marketing
expenses

Marketing
expenses for the Period ended March 31, 2018 were $0.2 million and mainly composed of compensation related costs and share-based
compensation expense for a new executive who is in charge of marketing and commercialization and joined the Company in June 2017.

Financial
expenses (income), net.

Financial
income, net for the Period were approximately ($115) thousand, compared to approximately ($215) thousand for the Parallel Period,
a decrease of $100 thousand or 47%. The decrease was primarily attributable to unfavorable foreign exchange losses.

16

Liquidity
and Capital Resources

Since
our inception and through March 31, 2018, we have raised a total of $113.4 million from sales of our equity securities before
the initial public offering, $40.5 million gross in the initial public offering itself ($34.9 million net), $15.0 million
from a November 3, 2015 underwritten offering, $24.0 million from a June 7, 2016 registered direct offering $17.9 million from
a November 16, 2017 underwritten offering and $22.0 million from IIA grants. Our primary uses of cash have been to fund working
capital requirements and research and development, and we expect these will continue to represent our primary uses of cash. We
expect our cash, cash equivalents and short-term bank deposits as of March 31, 2018 to be sufficient to fund our operations through
the end of 2020.

Funding
Requirements

At
March 31, 2018, we had cash, cash equivalents and short-term bank deposits totaling $49.9 million and working capital of $44.3
million. We expect that our cash, cash equivalents and short-term bank deposits will enable us to fund our operating expenses
and capital expenditure requirements through the end of 2020 and is expected to be sufficient to enable us to complete our Phase
3 clinical trial of VB-111 in rGBM. We are unable to estimate the amounts of increased capital outlays and operating expenses
associated with completing the development of VB-111 and our other product candidates. Our future capital requirements will depend
on many factors, including:

●

the
costs, timing and outcome of regulatory review of VB-111 and any other product candidates we may pursue;

●

the
costs of future development activities, including clinical trials, for VB-111 and any other product candidates we may pursue;

the
extent to which we acquire or in-license other products and technologies; and

●

our
ability to establish any future collaboration arrangements on favorable terms, if at all.

Until
such time, if ever, as we can generate substantial product revenue, we expect to finance our cash needs through a combination
of equity offerings, debt financings, collaborations, strategic alliances and licensing arrangements. We do not have any committed
external source of funds.

Cash
Flows

The
following table sets forth the primary sources and uses of cash for each of the periods set forth below:

Period ended March 31

2018

2017

(in thousands)

(unaudited)

Cash used in operating activities

$

(3,683

)

$

(5,676

)

Cash provided by (used in) investing activities

5,564

(62

)

Cash (used in) provided by financing activities

1

18

Net increase (decrease) in cash and cash equivalents

$

1,882

$

(5,720

)

Operating
Activities

Cash
used in operating activities for the Period was $3.7 million and consisted primarily of net loss of $7.2 million arising primarily
from research and development activities, partially offset by a net reduction in working capital of $1.8 million and net aggregate
non-cash charges of $1.7 million.

Cash
used in operating activities for the Parallel Period was $5.7 million and consisted primarily of net loss of $5.0 million arising
primarily from research and development activities in addition to a net increase in working capital of $1.3 million, and partially
offset by net aggregate non-cash charges of $0.6 million.

Investing
Activities

Net
cash provided by investing activities was $5.6 million for the Period. This was primarily due to the maturation of short-term
bank deposits and the purchases of Property Plant & Equipment in relation to the new Modiin facility.

17

Net
cash used by investing activities in the Parallel Period was $62 thousand for the Period.

Financing
Activities

Net
cash provided by and used in financing activities was $1 thousand for the Period and $18 thousand for the Parallel Period.

Contractual
Obligations and Commitments

The
following tables summarize our contractual obligations and commitments as of March 31, 2018 that will affect our future liquidity:

Less than

1-3

4-5

More than

Total

1 Year

Years

Years

5 Years

(in thousands)

Licenses

$

369

$

123

$

246

$

—

$

—

Operating Leases

2,544

565

898

683

398

Total

$

2,913

$

688

$

1,144

$

683

$

398

Off-Balance
Sheet Arrangements

Since
our inception, we have not engaged in any off-balance sheet arrangements, as defined in the rules and regulations of the SEC,
such as relationships with unconsolidated entities or financial partnerships, which are often referred to as structured finance
or special purpose entities, established for the purpose of facilitating financing transactions that are not required to be reflected
on our statement of financial positions.

Quantitative
and Qualitative Disclosures about Market Risk

We
are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our
financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result
of foreign currency exchange rates. Approximately 35% of our expenses in the first three months of 2018 were denominated
in New Israeli Shekels. Changes of 5% in the US$/NIS exchange rate will increase or decrease the operation expenses by up to 1%.

Foreign
Currency Exchange Risk

Fluctuations
in exchange rates, especially the NIS against the U.S. dollar, may affect our results, as some of our assets are linked to NIS,
as are some of our liabilities. In addition, the fluctuation in the NIS exchange rate against the U.S. dollar may impact our results,
as a portion of our operating cost is NIS denominated.

Inflation
Risk

We
do not believe that inflation had a material effect on our business, financial condition or results of operations in the last
two fiscal years. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset
such higher costs through hedging transactions. Our inability or failure to do so could harm our business, financial condition
and results of operations.

18

Recently
Issued and Adopted Accounting Pronouncements

IFRS
9, Financial Instruments, addresses the classification, measurement and recognition of financial assets and financial liabilities.
The complete version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39 that relates to the classification
and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary
measurement categories for financial assets: amortized cost, fair value through OCI and fair value through the P&L. There
is now a new expected credit losses model that replaces the incurred loss impairment model used in IAS 39. For financial liabilities,
there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive
income for liabilities designated at fair value through profit or loss. The standard is effective for accounting periods beginning
on or after January 1, 2018. Early adoption is permitted. The Company concluded that IFRS 9 did not have material impact on the
financial statements.

In
January 2016, the IASB issued IFRS 16—Leases which sets out the principles for the recognition, measurement, presentation
and disclosure of leases for both parties to a contract and replaces the previous leases standard, IAS 17—Leases. IFRS 16
eliminates the classification of leases for the lessee as either operating leases or finance leases as required by IAS 17 and
instead introduces a single lessee accounting model whereby a lessee is required to recognize assets and liabilities for all leases
with a term that is greater than 12 months, unless the underlying asset is of low value, and to recognize depreciation of leases
assets separately from interest on lease liabilities in the statements of comprehensive loss. As IFRS 16 substantially carries
forward the lessor accounting requirements in IAS 17, a lessor will continue to classify its leases as operating leases or finance
leases and to account for those two types of leases differently. IFRS 16 is effective from January 1, 2019 with early adoption
allowed only if IFRS 15—Revenue from Contracts with Customers is also applied. The Company is currently evaluating the impact
of adoption on its Financial Statements.

JOBS
Act

On
April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting
requirements for an “emerging growth company.” As an “emerging growth company,” we are electing to not
take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting
standards, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of
such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to not take
advantage of the extended transition period for complying with new or revised accounting standards is irrevocable. In addition,
we are in the process of evaluating the benefits of relying on the other exemptions and reduced reporting requirements provided
by the JOBS Act.